Report: Emirates calls on GCC countries to depeg currencies from US dollar to curb inflation

The Associated Press
Sunday, July 6, 2008

ABU DHABI, United Arab Emirates: A newspaper in the United Arab Emirates says the tiny Gulf state's government is lobbying neighboring countries to depeg their currencies from the U.S. dollar to curb inflation.

The National, which is owned by the Abu Dhabi ruling family, reported Sunday that the UAE is calling on all six Gulf Cooperation Council member states to "rethink" their monetary policy amid soaring inflation in the oil-rich region.

It cited an internal report by Abu Dhabi's Department of Planning and Economy.

The GCC members are Saudi Arabia, Qatar, Kuwait, the United Arab Emirates, Bahrain and Oman. All of their currencies are pegged to the dollar except Kuwait, which depegged its currency, the dinar, from the dollar in May 2007 in favor of a basket of currencies.

THE GLOBAL STOCK CRASH!

Markets around the world have been in serious decline most of this year. In fact the Financial Times reported in its weekend issue that on a global scale the markets are now down the most in 26 years!
Inflation rates are on the rise everywhere, including China. But China can’t engage a tight monetary policy to fight inflation, because that would likely lead to a flight of hot money out of the dollar and other weaker currencies, thus leading to a strong Chinese currency which would hurt their huge exports. It could also lead to a crash of the dollar. If/when that happens, there would be a hellish gnashing of teeth heard around the globe, as wealth held in the form of dollars will be quickly vaporized.
The Chinese and other countries know the day of dollar doom is coming which is why the dollar is continuing to come under pressure.
Americans for the most part are not yet aware of the dollar’s fate and how that is going to devastate their standard of living. But there is a growing sense among foreigners that they don’t want to get paid or hold dollars lest they be holding them when the plunge in the dollar’s exchange rate leads toward zero value for the Greenback. None of the major exporting nations want the dollar to crash just yet. They want more time to trade out of dollars and into something of value if they can before the final day of reckoning hits America and its fraudulent currency.
It seems to your editor that we are approaching a perilous crossroads in economic history, with our decadent, consumer oriented, live-for-today culture on the verge of collapse. We have basically “shot our wad,” as they say, and now we are going to have to pay for our orgies. We blame no one more for our condition than the father of economic lies, John Maynard Keynes, who convinced the West that we could eat our cake and have it too. No need to save to build for a better tomorrow. You need only deficit spend and print money to fund your expenditures. According to Keynes, there was no need to worry about an infinite amount of money supply leading to infinite price increases. If only we got rid off the gold standard, we would never need to suffer any more recessions and depressions.
It is amazing how many Ph.D. economists have swallowed Keynes’s lies, hook, line, and sinker. Of course, most of the high-profile economists have had their careers advanced by selling these lies because they have benefited the Wall Street and Washington establishment. They have used Keynesian lies to deceive the public into thinking that Government can give the public welfare and wars without a price. If only the public could connect the dots between welfare and wars on the one hand and $140 oil on the other, Keynesian lies would be exposed and we would at least have a chance to return to free market, Austrian economics and limited government once again. In other words, the west could become strong and more free again if it went back to work and accepted reality rather than falsehoods.
To be sure, the Keynesian lie has worked well for quite a while. It has worked especially well for the banks that own the Federal Reserve Bank and for those who put it in place to socialize wealth while privatizing profits. But given the rising global economic imbalances, one wonders how long it can continue when we see a growing number of countries facing the same kind of problem Ben Bernanke is facing. Globally, inflation is on the rise—big time. That should be dealt with by a restrictive monetary policy by all central banks in those countries where inflation is on the rise but it is just too painful to accept reality. As we are always noting, debt is the raw material from which money is created in a fiat (as opposed to asset-backed) currency. And so, with the money supply growing exponentially debt is growing even faster than income. That is being dealt with not by policies that would force us to live within our means and rebalance our accounts. Rather it is being dealt with by a faster and faster creation of money, which in turn is resulting in a faster and faster creation of debt. In other words, what is believed to be the cure is actually the problem and making the situation worse over the longer term.
The upcoming monthly issue of J Taylor’s Gold & Technology Stocks newsletter will feature an interview with Alex Macdougall, who is a student of the German hyperinflation experience that culminated in 1923. Alex recently spoke at the Spring CMRE meeting. He drew parallels between the German experience starting in 1870 under Otto von Bismarck, and the experience of the U.S. starting in the early 1900s, when the U.S. began its socialistic policies and inserted the Federal Reserve to fund socialism.
June 28, 2008
Jay Taylor, Editor of J Taylor's Gold & Technology Stockswww.miningstocks.com

Are you Drunk, Stupid or Asleep.. Part 1

This is very thought provoking and not for the faint of heart. Foul language is used so reader beware.








To those for whom this post may seem strange I ask that you just ponder what's here and it will all come clear (one hopes) in Part 2 tomorrow.



When I was younger I had a burning desire to know what was going on. I think that it came in part from a desire to know why I had been born into such difficult circumstances. I know there are some horror stories out there but the entire time I was growing up I never encountered anyone whose story was as brutal as mine, unless you count my brothers.


Part of it came from the instinctive awareness that things were not what they should be. It just didn’t seem to me that life was supposed to be the way it appeared to be. It was impossible to fit in. I thought for a long time that I was crazy and actually institutionalized myself to find out. This was even before the government decided to institutionalize me later on. All I discovered was that the doctors and the staff were crazy and that the patients were just more obvious about it. There was no help for me there so I left.


While I was in this institution I read a magazine article about someone called Dr. Timothy Leary. What the article had to say fascinated me. I’ve never forgotten how I felt while I was reading it. About a year later I was living near Dupont Circle in Washington D.C. with some early prototypes of a new consciousness. I took some Sandoz LSD and I can remember (who could forget?) looking around me and how it dawned on me that I wasn’t crazy at all. The wealth of information that passed to and thru me during this single event would take a long time, if it were even possible, to tell. I saw, clearly and unequivocally that not only was I not crazy but that the world most certainly was. Nothing I have seen since has changed that.


Along with a multitude of supernatural and occult experiences, I came to see that the world was just phenomena that recycled in the process of repeating itself. The people of the world looked to me like toy soldiers that got wound up and marched off until they walked into a wall and fell over and then they made rotating circles on the floor until there was no crank left in the key.


Governments and religions all looked like what they were; experiments and assumptions. The experiments ran from very, very bad ideas to occasional good ideas that wound up in bad hands. In every society there are those who seek power, control and fortune and eventually they control the experiment with money, guns and lawyers. As for religion, it always came out looking the way certain people decided the incomprehensible, inexplicable, unexplainable ought to look. This necessitated a holy book and a priesthood and a great deal of money to be the gas that powered the car and the oil that lubricated the engine. Somebody always had to be in charge and, because it was always impossible to get the man himself to show up in person, somebody had to stand in for him and you can see what happened after that.


There’s only one good government and that’s the one whose purpose is the greatest good for the greatest number of people. The less aware that you are of its presence the better it operates. Sooner or later the people I was talking about before show up and it goes through a variety of stages until it becomes an object of fear and ridicule (that’s where you are now). There’s only one good religion and that’s the one where everyone behaves like the person upon whom it was founded in the first place and which was the reason everyone thought it was such a good idea to begin with. It’s that simple. When it becomes complicated …any of it… it’s always for the same reason, “What’s puzzlin you is the nature of my game.” Whenever something is wrong with any human collective system that usually works (and then stops working, or starts being badly worked) it is always for the same reasons. A certain handful of individuals have gotten together to steal and control everything in sight. That’s where you are now. Fascism is defined as a state where the corporations control the government. That’s where you are now.


Revolutions shouldn’t have to be bloody but they almost always are. Even when you take a guy like Mahatma Gandhi and all that he practiced and all that his followers practiced, it was still a hard road to travel. The same was true of Martin Luther King. You need a revolution. I don’t know what shape it’s going to take but it’s unavoidable unless you want to see what it’s like to be a Palestinian.


It’s a curious thing about America. You should probably watch this video about now. That’s pretty interesting isn’t it? All over the rest of the world people know about Ron Paul and are supporting him. It’s hard to understand how they even heard about him but somehow they did. He’s got websites in most countries that are put up by residents of that country.


Like you, I don’t know what the deal is on Ron Paul. I do know what the deal is on the other people. It’s possible that Obama has some hope of being a square shooter but anyone who feels the need to continuously kiss Israel’s ass in public makes me nervous. Ron Paul doesn’t do that. I can tell you right now that if you all got together and decided that you were going to vote for Jessie Ventura for president with Ron Paul as his running mate that you would have gone a long way toward correcting your situation. I suggest it this way instead of the other way around because Ventura is much more the sort of man that needs to be the front guy while Ron Paul is a specialist who shines in areas that are less understood by the public though certainly as important as anything could be.


The people of America (at this time) remind me of the kids in the back of the bus who always get smacked in the back of the head by the bullies and don’t do anything about it. I know something about bullies and there are very few options to choose from in terms of dealing with them. It might take some work to get yourself into a position to do what you have to do but you have certainly got reason for personal initiative. In terms of a government you are supposed to have LAWS that protect you from bullies both foreign and domestic. You’ll note that it is your laws that are under attack due to an attack by someone. This got blamed on a rag tag assortment of members of a so-called terror group that according to high ranking CIA agents doesn’t even exist. Now, your LAWS are being altered to protect you from a danger that has been orchestrated by elements in your own government with the assistance of a foreign nation that is supposed to be your best friend. That’s what all the evidence says. That’s what the evidence says.


Jesse questions 9/11. He has publicly said so. I can’t imagine how you would want to elect anyone who isn’t willing to cop to this. Jesse Ventura says the right things. Jessie Ventura would be a good president because he wouldn’t want to let himself down, much less you.


I don’t know what’s wrong with you people. Are you that stupid? Are you that drunk or stoned? Are you asleep? What is wrong with you? It’s not suddenly going to get better. The people responsible aren’t going to stop what they’re doing and say to each other, “You know what? This is wrong. Let’s do the right thing.” They’re psychopaths… do the math. This is why you ‘had’ LAWS in the first place. Laws are there to protect you. When laws become selective in application and open to whim and caprice and the interpretation of the law becomes the province of those whose position and livelihood depends on corporations… you’re screwed.


Let’s work on the concept of Six Degrees of Separation. Everyone reading this knows someone who knows someone and someone knows someone who is in a position to make the right thing happen. Everyone talking to everyone will soon find that everyone pretty much agrees that criminals have taken over the government. The only people who don’t agree are part of the operation or too stupid to be part of yours.


This essay is just a portion of the continuous, unavoidable necessity to keep asking the American People to pay attention and tear their asses away from the flesh/plether bonding of their ass to the TV chair.

For Currency Traders, an important update from FXI

FXI Update

*A CLEAR AND PRESENT DANGER*

Subject: A Clear and Present Danger


I received the following from an extremely well informed person. This explains the situation the Federal Reserve and its member banks are in at this exact time...
It explains how we got here and what needs to be done to free ourselves of the bankers who have illegally run our money system for most of the last century.
This is the most important article you will read. I ask that you send it to everyone you know. It explains everything clearly and simply. You don't have to be a Constitutional scholar to understand what happened, how it happened, and what we the citizens of the united states MUST do to insure that the bankruptcy of CORPORATE UNITED STATES does NOT fall on us!! Please read this carefully.



*April 24, 2008*


*A CLEAR AND PRESENT DANGER* - Part One


If events proceed as I hope, the Federal Reserve also will be dissolved as insolvent, and its Notes we have used as currency for 75 years will become valueless after some period where legally earned notes may be exchanged for new and legal United States money. *There will be volumes written in the future about how the United States of America, and particularly the control of our Treasury were quietly placed in private hands and secretly, from the general population, held and used there for 75 years. Those hands were for the most part,European, and had little, if any, interest in the welfare of the Citizens of this nation. Some of the "hands" were US, and they were even more ruthless. *

*But the situation has dramatically changed during the past five years, and particularly since November of 2007.*

*This narrative will necessarily begin with the Japanese invasion of Manchuria at Mukden. That is a well known historical fact. What is not as well known and understood is the "Mukden Incident" which occurred on September 18, 1931 was, in essence, a subterfuge undertaken by a few junior officers of the Japanese army when they secretly dynamited the South Manchurian Railway (owned by Japan) to provide the motive for the Japanese military conquest of Manchuria which continued until the Japanese victory on February 18, 1932 .*

*The most available explanation for the Japanese Manchurian invasion was that Japan coveted resource-rich Manchuria as a source of cheap raw materials for their burgeoning industrial complex. That explanation's basis is true, especially given an increasing shortage of favorably priced raw materials which Japan had to otherwise purchase and import from other sources.*

*But there was another, and largely hidden, reason. In 1931, the Manchuria-China border was only a few miles from Beijing where the Chinese Emperor, Pu-yi resided. The Manchu emperors kept much of their gold and other treasury items in northern Manchuria just a few miles from border, and therefore only a short distance from their Chinese capital.*

*Very shortly after the Japanese invasion commenced in southern Manchuria, a delegation sent by the United States Federal Reserve Bank to Beijing entered into negotiation with the Emperor. The Federal Reserve's offer was to quickly remove the Royal Treasury from its Manchurian location, and thereafter lease the contents of the Treasury for seventy years. In return, the Emperor received valid United States Federal Reserve bonds, maturing in seventy years, and in sufficient quantity to guarantee the debt as well as enough to pay the to-be accrued- seventy-year-interest. *

*The terms of the lease required the Emperor's estate, at the end of seventy years, to exchange the bonds with interest coupons attached, to the Federal Reserve in exchange for the return of all the Emperor's gold and other treasure, plus the accrued interest (to be paid in gold), to his estate's custody. *

*The contents of the Emperor's Manchurian Treasury were taken overland through China, and then by sea to Manila, Philippines, where the US quickly built and operated the largest gold refinery, at that time, in the world. After the gold was refined, some of it was sent to Switzerland where it was stored in extensive underground vaults under Zurich, while the greatest part was sent to the Federal Reserve vaults in New York.*

*Of course, much happened between 1931 and 2001, not the least of which was World War II and the Chinese Communist capture of all China except the island which was then called Formosa (now Taiwan). Pu-yi (the Emperor) remained a communist prisoner for many years and died as a gardener.*

*It apparently appeared to certain US and European financial interests who were interested parties in the leased Chinese Treasury, and it was probably their plan, that the Chinese imperial line died out, or at least was so impoverished that it had no means or power to recover any of their leased Treasury materials and articles. * *So seventy years passed.*

*In fact, the leasing parties grossly miscalculated. The Emperor, Pu-yi, had additional gold and other assets stored in protected places other than Manchuria-assets which escaped the attentions and discoveries of both the Japanese and Communist Chinese. Within the past two decades, much of that wealth has been returned to his grandson, a certain "Mr. Yi" who resides in Taiwan.*

*The ownership and control of the bonds which were exchanged for the Chinese Treasury were placed a number of years ago in the hands of certain surviving members of the Chinese royal family, and recently Mr. Yi. *

*So when 2001 came, Mr. Yi, The Emperor's grandson, by now a very wealthy and powerful individual, formally negotiated the return of the Chinese Royal Family's leased legal estate and the accumulated interest thereof from the United States Federal Reserve Bank (the lessor), in exchange for the Federal Reserve bonds and attached interest coupons. The returned amount of the Emperor's Treasury and interest was a very small part of what was owed.*

*A major part of the problem was that the United States Federal Reserve Bank, although owned by the United States Citizens by way of their Constitutional government, was operated from the beginning as a private organization whose assets were also privately owned, held and used (that included the entire amount collected from the Citizens/citizens as taxes). *

*The Chinese Treasury was divided for years among a number of wealthy and powerful European and North American interests, many of whom never expected the Chinese royal line to survive. Consequently, they never expected to repay either the principal or the interest due on the Chinese royal assets they held and used. *

*In fact, many of them firmly resisted Mr. Yi's legal demand that whatever Chinese royal assets they held were required to be immediately returned with all due interest. *

*After some resistance, some of the Europeans holding Chinese Treasury assets
returned some of the Emperor's Treasury, but that amount also fell far-far short of what was actually owed. *

*Mr. Yi has since used legal and financial resources available to him, especially the assistance of a little known but very powerful World Monetary Authority, to force the return of assets which are properly his.*

*That brings us the present. But before we can further address our subject, we need to explore more history-United States history. * *On April 6, 1933, President Roosevelt, with Congressional approval, declared a "national bank holiday" which lasted through April 9. There is a plethora of information about that period and the reasons causing such, but there is practically nothing said about one major event which occurred during the same time. A corporation was formed at the President's order called THE UNITED STATES OF AMERICA CORPORATION. That was done without Congressional action of any sort, so that organization is, and always has been, a privately owned, not public, corporation. At the same time, our legal system shifted from Public and English Common Law, to Private International Law.*

*THE UNITED STATES OF AMERICA CORPORATION then usurped all the identity, power, legal standing, laws and mandates, and assets of the Constitutional United States-virtually seamlessly and with hardly anyone even suspecting what had happened-for 75 years. * *Let me restate that in less complicated terms-for 75 years a private corporation, not our Constitutional government, has performed the role of our government for the exclusive benefit of that organization's shareholders and their friends. *

*The CORPORATION, through Congress, immediately passed into "law" such things as the law establishing the FEDERAL REGISTER ACT, which effectively allows the President to declare and establish "law" by publishing his declaration in the FEDERAL REGISTER, that without consulting or informing Congress, let alone requiring their debate and passage of any effective law. *

*That should explain a great deal about why our "government" consistently behaves outside our Constitution and other laws. Our Constitutional government is bound (limited) by the Constitution. The CORPORATION, however, is bound only by the tenets of the United States Code and the Code of Federal Regulations, both Private International Law, which, inthis country, may only be tried and enforced by and in Admiralty, not civil or equity courts. Equity courts were done away with by our"government" soon after our form of law was changed.*

*A large book could be (and probably should be) written on the subject of THE UNITED STATES OF AMERICA CORPORATION, however that is definitely outside the scope of this document. We will work only with the relationship of Mr. Yi and his efforts to enforce his contract with the Federal Reserve Bank. THE UNITED STATES OF AMERICA CORPORATION, since it is in mortal financial default, was forced by the Monetary Authority to negotiate, for the past several months in Switzerland, their bankruptcy. Two Mondays ago the initial bankruptcy filings of that CORPORATION were placed in the United States Supreme Court. That bankruptcy was forced by Chinese and "other" interests.*

*I posit that the Citizens/citizens (yes, there is a difference), as well as those Citizens who are also Native Americans, also have a substantial legal interest in that matter, but as yet not legally entered in the case. It is absolutely essential that the CORPORATION assets placed in the legal proceeding be only theirs, and not the assets of the Constitutional United States, their Citizens/citizens assets and persons, and anything which is the property of our Native Americans. *

*I further posit that CORPORATION owes a great debt to the Constitutional United States of America and its Citizens/citizens. Our rights will be protected only if we act-it is in no one else's interest to so do. We need several very skilled Constitutional attorneys licensed and able to practice and argue in and before the US Supreme Court. If anyone fitting that description reads this document and would agree to assist, we need to hear from you immediately.

--- end of part one ---


So here is the rest of the story:

All of the business done by the Federal Reserve Bank of America since its inception in 1913 skirted the US Constitution by calling the currency they issued as "UNITED STATES NOTES" because it was specifically unconstitutional for the word "money" to appear anywhere on any note. Had the word "money" appeared, the Fed would have been guilty of counterfeiting. Furthermore, only the US government had the authority to produce and promulgate "money." The evidence of this is to be found in Article I, Section 8 of the Constitution.

I posit that the UNITED STATES OF AMERICA CORPORATION, a private organization continuously with shareholders, officers and directors since inception, has illegally been, with the collusion of the Federal Reserve Bank (another corporation, public but operated until this last year as a private organization), in complete control of the financial life of this you know, the CORPORATION is now in bankruptcy.

As a private corporation, whatever debts they have incurred as THE UNITED STATES OF AMERICA, which by the way is virtually all the debt attributed to this nation, is actually theirs and not the Constitutional United States' and/or its Citizens/citizens. That can and will be proved in due time in a court of law, probably the US Supreme Court.

On the other hand, I believe the United States (Constitutional), its assets, its Citizens and their assets and can be proven to be not owned by THE UNITED STATES OF AMERICA, and therefore outside the bankruptcy. I believe the hyperinflation depression information (The writer's first email was posted as part of this article) sent you earlier today can be avoided if we act quickly and wisely. I can expand on that subject later.

If events proceed as I hope, the Federal Reserve also will be dissolved as insolvent, and its Notes we have used as currency for 75 years will become valueless after some period where legally earned notes may be exchanged for new and legal United States money.

I wish to see the United States to return to a precious metal basis for its money and I know how that can happen. But we have some rough water ahead, and unless we wish to experience hyperinflation depression or any part of it, we must act immediately to have something in place to replace the Fed notes we now use as currency.

I can expand on the above, but you have probably enough to think about now so I will call it a day.

The collapse of the United States is accelerating: Oil in Euros vs. US

In the last eight years implementing the plans for the Project for the New American Century (PNAC) designed "to promote American global leadership" has backfired.

To accomplish PNAC's goals, all threats needed to be eliminated. From the onset, the United Sates earmarked two countries as mortal enemies: Venezuela and Iran. With Venezuela, it is well documented that the CIA attempted to overthrow the democratically elected government of Chavez. And with Iran, the United States continues to use it as a scapegoat for its failures in Iraq. These cold war tactics however are proving to be US's undoing.

The United States is hemorrhaging from every orifice, and oil prices can be used to measure the rapidity of its demise.

In April 2006, Venezuelan president Hugo Chávez launched "a bid to transform the global politics of oil by seeking a deal with consumer countries which would lock in a price of $50 a barrel." At the time, this proposed price was $15 a barrel below global market levels, and what must surely seems to be a steal at the current $118 a barrel.

How critical was the decision not to take Chavez's proposal seriously? Just two short years later, in April 2008, President Mahmoud Ahmadinejad of Iran is stating that oil at current levels is too cheap. That's calling a 136% increase in price not enough, and most analysis and the market seem to agree. So what has changed in that time? The perceived value of the US dollar of course.

In 1999 the euro was introduced as an accounting currency (travelers' checks, electronic transfers, banking, etc.) and then launched as physical coins and banknotes on 1 January 2002. The euro replaced the former European Currency Unit (ECU) at a ratio of 1:1. However its value quickly began to drop, reaching a low of 0.8252 relative to the US dollar on 26 October 2000. This proved to be a solid support level for the next two years, and in 2002 the euro began its appreciation reaching a high of 1.60 as of 23 April 2008.

Aside from consolidating power for the new European Union, the euro added liquidity and flexibility to the financial markets which in time has made the euro a very attractive and safe investment as a major global reserve currency.

As of the beginning of 2007, within five short years, euro notes in circulation have exceeded the value of circulating US dollar notes. Considering that the dollar has been devalued by approximately 50% since reaching its high relative to the euro in 2000 (the euro has gained approximately 100%), we can only assume that according to global markets, the US dollar is losing its perceived value.

Price of oil in US dollars and euros

Oil prices had a recent low point in January 1999 at $8 per barrel, after "increased oil production from Iraq coincided with the Asian financial crisis, which reduced demand. The prices then rapidly increased, more than tripling by September 2000 (35 dollars per barrel), then fell until the end of 2001 before steadily increasing."

1999 is the same year that the euro was introduced as an accounting currency. By the time that the euro was launched as physical coins and banknotes in January 2002, oil was trading at approximately $20 a barrel, and at present, on 23 April 2008, oil is trading at $118 a barrel.

Let's compare the rise in the price of oil relative to the two currencies.

If we take Autumn of 2000 as our base point when the euro was trading at its low of 0.8252 relative to the US dollar and oil was trading at $35 dollars per barrel, we get the following results: The increase in price of oil in euros has been 74% since 2000, while it has been a 237% increase in US dollars.

Now let's take a look at what the increase in price of oil in euros and US dollars has been since April 2006 when Hugo Chávez wanted to lock the price at $50 per barrel. (Note: in April 2006 the euro was trading at approximately 1.22 relative to the US dollar).

Taking into account that the euro had a dramatic increase in value from 2002 to 2005, and then began a retraction period through to 2006, the above numbers confirm what Ahmadinejad has been stating, that "the dollar is not money any longer but a handful of paper distributed in the world without commodity support," and that oil is undervalued at present levels when priced in US petrodollars.

Key euro/usd trading advice from FX Insights moderator

Key euro/usd trading advice from FXI moderator